Amazon’s scale and engagement approach
In my last post, I discussed how Amazon’s frontline workers are generally very happy with their pay. In this one, I’ll discuss what else Amazon is doing to keep its employees engaged.
Amazon has become the world’s largest employer, with over 1.5 million employees worldwide. It’s also a major employer in the U.S., where it has more than 1 million employees. Its demand for frontline and delivery workers is particularly high.
Glassdoor, Indeed, CareerBliss, and Great Place to Work all offer employee feedback about companies. These sites can be used as sources of information about engagement practices at different employers.
One thing that Amazon is doing to improve worker engagement is investing heavily in pay, benefits, and skills training. Amazon says that it will spend an additional $1.2 billion incrementally on pay for U.S. frontline operations employees, which should bring the average pay up to over $23 per hour. The company has committed $2.5 billion to education and skills training, with the goal of preparing at least 50 million people for the future of work by 2030. Benefits begin on day one, including health care coverage, paid parental leave, and paid college tuition. Amazon also created the Sustainability Ambassadors program, in which employees lead campus projects and create virtual engagement opportunities.
What undermines engagement
However, Amazon’s strict operational rules undermine these efforts. Employees must package products so quickly that new packages are sealed and ready every 30 seconds. They have to take bathroom breaks at scheduled times, and they’re monitored during those breaks. During peak holiday seasons, employees are required to work mandatory 60-hour weeks. One employee review cited “little response given to concerns” when employees raised issues with these rules.
A contrast with people-first companies
I think Amazon’s approach is not really a people-first mission. Southwest Airlines, for example, has a well-known mission statement:
Southwest Airlines’ mission is to provide our customers with the highest quality service, while maintaining the lowest possible cost structure. We accomplish this through our people — we believe our employees are the key to our success. Our employees are provided with the same concern, respect, and caring attitude toward our customers that we expect from our customers.
Southwest Airlines’ mission statement clearly states that its people are its most important asset, and that employees are expected to treat customers with the same level of respect and care that customers are expected to show them. This people-first principle is absent from Amazon’s documented approach to its hourly workers. Pay alone does not offset the damage to engagement caused by rigid rules.
The lesson on survey transparency
Survey transparency is another practical, transferable lesson that any employer can learn from Amazon. Surveys are great tools for gauging employee sentiment, but unless you report survey results back to your employees, they won’t help you fix problems. If you want to use surveys to gauge engagement, you should report the results back to employees, share specific action plans to address problems, and communicate ongoing progress updates. This is especially important in large organizations, where employees often feel unheard.